Rescuing XOP ETF Trade Caught In Oil’s Collapse – Nov 28 2014

On Friday with the plunge in the price of oil to around $66, the XOP ETF collapsed over 12% falling $7.38. The drop itself was overdone in my opinion but as it is a basket of oil stocks, there really is not much one can say except that this shows that ETFs are not really safer than holding individual stocks, in my opinion. XOM for example fell $3.54 for a drop of 4.17% and Chevron fell $6.24 for a drop of 5.42%. Neither of these big caps came close to falling the same as the XOP ETF and that is part of the reason I stay with big cap stocks. ETFs tend to be filled with a lot of stocks both large and small which can make holding ETFs painful at times. I prefer what I consider a safer bet with the large cap stock of XOM which I have traded for years without any losses.

That said, this year I have traded on and off in XOP ETF partly to let other investors see how to trade a volatile ETF for additional income and how to protect trades in such a volatile ETF.

This article discussed the latest trade positions in XOP ETF and how I am putting in place the rescue strategy that will be used to keep this trade profitable and my capital working hard while avoiding assignment of shares or any loss to my capital.

XOP ETF Rescue Strategy

FullyInformed USA Members can can review the latest XOP ETF rescue strategy discussion directly through this link or they can sign in to the full USA members site here. Non-members can join here or read about the benefits of being a member.

Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.